Yes, we have hard evidence Washington and Wall Street knew the 2008 crash was coming years in advance. Yes, they could have prevented it. But did no’t. And yes, their cover-up cost Americans trillions. Was their Reaganomics ideology so rigid, so blinding, they couldn’t (and still cannot) admit they were wrong? Forcing them to lie to America? Cover up the lies? The evidence is clear.
Today, a harsh lesson from history, facts, and a warning. Listen closely America. It’s already happening again. The collective “Reaganomics Brain” has gone from crash to cover-up to comeback kids to capitalism-for-the-super-rich in three short years. Now with absolute power over America. But the worst is yet to come. The forces behind the 2008 crash are stronger today. Like the villain in a horror flick sequel, the darkside is now hungrier. “Phase Two” is already in full swing as the “Reaganomics Brain” aggressively races to complete unfinished business the 2008 meltdown, and will implode Wall Street banks and the Fed, ending the reign of the dollar as the world’s reserve currency
Recently we reported some bearish predictions for 2011 by two respected market leaders: Ned Davis warns of a “midyear peak” before a new cyclical bear. Jeremy Grantham warns investors to get out before Christmas. Bad news for investors angry at the past, worried about the future. Remember, the Dow’s barely above its 2000 peak of 11,722. Adjusted for inflation, the market has flatlined the past decade.
Get it? Wall Street is a loser. Wall Street lost about 20% of America’s retirement money in the past decade. If you’re a boomer and a betting man, odds are Wall Street will lose another 20% by 2020. America’s boomers don’t have to be rocket scientists to see the workings of the “Reaganomics Brain” here, how it’s self-destructing capitalism, democracy and your retirement. Here’s hard evidence of lies and cover-ups in past and future catastrophes:
March 2004. Fed Chairman Greenspan “cover-up” of coming crash
In a Bloomberg Market’s magazine column last year, “Greenspan Coverup,” Roger Lowenstein, author of The End of Wall Street, wrote that in a newly released transcript of a March 2004 meeting Greenspan “argues against disclosing too much to the public lest the Fed ‘lose control of a process that only we fully understand’.” Yes, a cover-up. Lowenstein, a classy guy, went ballistic: “This statement ranks as a sign of monumental arrogance. It was Greenspan himself who didn’t understand, much less ‘fully understand,’ that the Fed’s lax mortgage regulation and easy monetary policies were setting America up for a disastrous fall.” The new Oscar-winning film, Inside Job, exposes more of the many lies.
My full commentary in MarketWatch 3.8.11